15 Nov Rent control is an example of a price ceiling. Price ceilings keep prices low for consumers. We can clearly see that sellers (landlords in this case) are worse off. Consider if there
Rent control is an example of a price ceiling. Price ceilings keep prices low for consumers. We can clearly see that sellers (landlords in this case) are worse off. Consider if there is an argument to be made that consumers are worse off, too.
a) After watching the Seinfeld video clip, discuss how some consumers are made better off and some are not in a rent-control situation.
b) What kinds of rationing mechanisms would develop to help allocate the few apartments that are available?
c) In your opinion, do the benefits of rent control outweigh the costs?
I attached the video transcript. please put the answer into paragraph form
Seinfeld: The Apartment
JERRY: Boys, boys. HAROLD: Oh, Jerry. JERRY: I slid the rent under your door, Harold. Did you get it? HAROLD: Yeah, yeah. Hey, Jerry, would you like anything from Mrs. Hudwalker's apartment? [Man speaking in Spanish] HAROLD: I was only joking. He thinks I'm going to give you Mrs. Hudwalker's things. [Manny starts talking in Spanish] HAROLD: We have to go up there now and clean the apartment. It's a good thing her rent was overdue. She'd be rotting up there for a month. JERRY: She died? Mrs. Hudwalker died? HAROLD: Ninety-four years old. I found her yesterday. She didn't have a wig on. It was horrifying. [Manny speaking in Spanish] HAROLD: What's the matter with you? I'm talking. So, Jerry, you know anybody who needs an apartment? JERRY: Are you kidding? You know my friend Elaine? HAROLD: Oh yeah, I like her. She always says "hello" to me. JERRY: It's not promised to anybody? 'Cause she would take it in a second. HAROLD: Well, Manny wanted it for his brother, but he got deported. [Manny starts protesting in Spanish] HAROLD: What's the difference? It's true. JERRY: So, it's okay? I could just tell her she can have it? HAROLD: Sure, sure. She's getting a bargain, too. It's only four hundred dollars a month. [Manny yells in Spanish] HAROLD: Okay… [Manny keeps talking in Spanish] HAROLD: Okay. KRAMER: Hey, Harold, what do you think? HAROLD: Manny, look, Kramer put mousse in his hair. [Manny speaking in Spanish]
KRAMER: Thanks. ELAINE: What was that all about? JERRY: Oh, nothing important. ELAINE: What's going on? What is that look? JERRY: What look? Nothing. ELAINE: Something's going on here. JERRY: I don't know if you should sit for this or not. Sitting is good if you faint, but standing is good for jumping up and down. I can't decide. ELAINE: Jumping up and down? What are you talking about? C'mon. Cough it up. JERRY: Oh, Elaine. You know the way I am – rarely ever thinking of myself. My only concern is the welfare and happiness of those close to me. Sure, it hurts sometimes – to give, and give, and give… ELAINE: Would you please? JERRY: What would you say if I told you that… ELAINE: Told me what?! JERRY: I got you an apartment in this building. ELAINE: No. JERRY: Yes. ELAINE: No. JERRY: Yes. ELAINE: You didn't. JERRY: I did. ELAINE: You got me an apartment in the building? JERRY: I got you an apartment in the building. ELAINE: How did you… JERRY: Remember Mrs. Hudwalker? The ninety-four-year-old woman who lived above me? ELAINE: No. JERRY: She died. ELAINE: She died? JERRY: She died.
ELAINE: She died! JERRY: And the rent is only four hundred dollars a month! ELAINE: Get out! Four hundred a month? Only four hundred a month? JERRY: Four hundred a month. ELAINE: And I'll be right upstairs? JERRY: Right upstairs. ELAINE: Right above you? JERRY: Right above me. ELAINE: Oh, we're neighbors. I'll be here all the time! JERRY: All the time… ELAINE: We can exchange keys so we can come in and out. Oh, this is going to be great! JERRY: All the time… HAROLD: Hello, Jerry. HAROLD: Okay. Your friend can't have the apartment, Jerry. JERRY: What? HAROLD: Because somebody offered Manny five thousand dollars for the apartment. I don't want to do it. Manny wants to do it. [Manny yells in Spanish] HAROLD: Because it's true! Why shouldn't I tell him? JERRY: Hey, hey. I understand. You're businessmen. [Manny talks in Spanish] HAROLD: Oh, now, he says that if your friend has five thousand dollars, we'll give it to her. JERRY: Well, that's a lot of money. But, if that's the way it's gotta be, that's the way it's gotta be.
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